Canadian Trio Charged in RV Park Scheme
The developers of a proposed RV park at Pigeon Lake, 75 miles north of Red Deer, Alberta, have been charged with breaching securities laws after raising $2.9 million from 23 investors.
The Alberta Securities Commission (ASC) on Wednesday (April 17) issued a notice of hearing alleging that Patrick Lough, Lynda Davidson, Wayne Barnes and Mountain Shore Land Ventures Ltd. illegally distributed shares and made false or misleading statements to potential investors, The Calgary Herald reported.
The ASC claims that between February and September 2011, the parties raised money without filing a prospectus or exempt distribution reports with the ASC as required.
The company was incorporated in British Columbia in 2008 and registered in Alberta in 2011. Lough is from Boswell, B.C., Davidson, his sister, is from Saskatoon, Saskatchewan, and Barnes is a resident of Kimberley, B.C., the notice says.
ASC staff report the company struck a deal to buy land on the lake for $5 million, then began marketing investments at $100,001 each.
In return, buyers were to get a 1% ownership in the golf course and land, 1% of net profit from the eventual sale of non-investor owned RV lots and the golf course, ownership of one RV lot of their choosing, and a five-year golf membership.
The ASC alleges that the accused parties misrepresented their development record, the demand for and development status of the project, and the level of risk.
A date for hearing is to be set May 6.